Fernandina selects First Federal Bank to manage $45 million after restarting bidding process

By Mike Lednovich/Editor

After scrapping an earlier attempt to secure long-term banking services, the Fernandina Beach City Commission has unanimously approved a new contract with First Federal Bank to manage approximately $45 million in city funds following a revised competitive bidding process.

In a 4-0 vote Tuesday, commissioners awarded the city’s banking services to First Federal Bank for a five-year term with two one-year renewal options.  

That decision comes just six weeks after the commission had rejected all bids under the city’s initial solicitation, despite city staff recommending the same bank.

“This is the second time we’ve been through this process after the Commission made some revisions to the bid itself, so we reissued that bid and received four proposals,” City Manager Sarah Campbell told commissioners.

The city first issued a banking services request for proposals in December 2025 as its existing contract approached expiration in May 2026.

Under that initial process, a staff evaluation committee unanimously recommended First Federal Bank, and Resolution 2026-14 was brought forward for approval.

However, commissioners voted in February to reject all proposals and restart the process, directing staff to refine evaluation criteria, standardize interest calculations and expand the pool of eligible banks.

“The Commission… determined the City’s best interests would be served to fail Resolution 2026-14… [and] reissue a Management Banking Services RFP with refined evaluation criteria weights,” according to the agenda summary.

The revised solicitation was issued Feb. 26, drew four proposals, all deemed responsive by city staff.

A six-member evaluation team — including finance staff and a community representative — again ranked First Federal Bank as the top proposer.

“As with the prior RFP, evaluators unanimously chose First Federal Bank as providing the best fit for the city’s needs,” Comptroller Susan Carless said during her presentation to the commission.

Combined scoring showed First Federal with 230 points, well ahead of Regions Bank at 201 points and both First Port City Bank and PrimeSouth Bank at 200 points.

The evaluation considered financial strength, implementation plans, staff qualifications, fee structures and interest earnings, and breadth of services.

Commissioners indicated that improved financial returns helped drive the final decision.

"And I will be voting for that we accept First Federal; their rate is significantly higher. And I appreciate city staff's effort in this," said Commissioner Joyce Tuten.

According to bid documents, First Federal proposed an interest earnings structure tied to the effective federal funds rate, which staff said would increase the city’s returns compared to its current agreement.  

Commissioners also said the revised RFP provided a clearer framework for comparing proposals.

“I think we have a better understanding of what our banking options are for us going forward with this new RFP,” Commissioner Genece Minshew said.

The process included weighted scoring categories and standardized metrics to ensure consistent evaluation across proposals.

The new agreement comes as the city’s current banking contract is set to expire May 14, 2026, that required timely action to avoid any disruption in financial operations.